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Net metering is just essentially running forward or back. This is a big loss for the utility since they are paying the customer at a rate which includes all of the line fees and taxes that they pay when the meter is running forward. But many states have forced the utility to take the loss as a means of stimulating the uptake of solar. Smart metering or two way demand metering would pay the consumer only for the excess electricity according to the spot price in effect at the time. This requires an internet connected meter which very few areas are using.
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